I also have a good friend who is a mortgage banker. He would talk of computer consultant married couples who made $300-400K/year-combined- when the tech times were good. With a little effort, they could've paid cash for a$ $250-$400,000 home (which BTW still buys a very nice home in this area). Instead, they're now laid off, up to their eyeballs in debt, and trying to refinance. They could be living in a beautiful home for the $2,000-$4,000 in annual property taxes; but they spent it all.
My brother, who is not a complete idiot with his money (possibly a partial) started his own company. He would tell me I'm "really hurting money wise". Then I would look at his vehicles and there would be a year-old loaded Suburban 4X4 and a brand-new Z71 crew cab 4X4 pickup. $60-70,000 in vehicles? Please don't tell me your hurting. I do sales just like him- drive 40,000-50,000 miles year- have a 2005 Taurus, purchased used from Hertz Car Sales. Why, because it is a disposable item for me to drive into the ground. Do I wish I drove something nicer, sure, but then I tell my self I saved 10-20 grand and I'm getting there at the same speed.
The local credit load here in the Research Triangle area is something like $10,000 per household in credit cards alone. It's just shocking.